When discussing the psychological skill set needed to be successful over the long term in trading and investing, comparisons are often made with various sports. This discussion usually centers around individual activities such as golf, triathlons, and other endurance activities that involve a combination of both physical and mental prowess. One team sport that has…

Two quotes were provided by one of the comments to my posting last week which in turn provide the opportunity to continue discussing this very important area of trading, that of beliefs and what you believe, which I started discussing 2 weeks ago. The two quotes are: “beliefs are not based on evidence” and “without…

“I believe in the sun, even when it doesn’t shine. I believe in love, even when it isn’t shown.” What other things do you believe in that are unseen? Gravity? Radio waves? Microwaves? Gravity, causes the apple fall to the ground from the apple tree. Radio waves, used by your ‘wireless’. Microwaves, used by mobile…

I find myself living in two trading worlds (or cities) at the moment, one where I am totally out of the market and the other where I am fully invested! Yes, both are long equities portfolios that deploy exactly the same processes and rules. How does this come about? I’ll start with Mark Douglas’s First…

Do you have a life process? Or life processes? Some will answer an emphatic “Yes” to this question and others will answer with a counter-question: “What planet are you on asking me if I have a life process?” You may not have documented it but we all have a life process. For most, their life…

“Everything should be made as simple as possible, but not simpler.” Albert Einstein. If you haven’t heard of it the acronym K.I.S.S. stands for Keep It Simple Stupid. This acronym is as applicable to the field of trading the markets as it is to any. The Keep It Simple Principle works best when activities are…

Have you ever wondered what sets successful traders apart from ordinary market participants? It comes down to self belief and the ability to execute ones edge according to a trading plan. Once you have a strategy or system that has a demonstrated edge, the next step is to cultivate your beliefs so that you can…

Did you ever have the feeling that the so called experts are really not experts at all? If you said yes, then you’re not alone. The stock market is full of so called experts who believe they can predict the future and tell you what will happen next in the market. But history tells us…

Don’t forget to ‘Like’ us on Facebook – Click the ‘Like’ button on the right I can almost guarantee, that at one time or another in the future, if not already, you’ll be challenged and left questioning yourself after experiencing a large loss trade or numerous loss trades that accumulate in your portfolio. These losses…

Don’t forget to ‘Like’ us on Facebook – Click the ‘Like’ button on the right As traders and investors we need to learn from our mistakes. This is why failure is so important. Most do not learn from their own mistakes repeating them many times over. Some do learn from their own mistakes but the…